Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 17969 

17 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5For an order in a non-Nasdaq security through 

which a member accesses liquidity, this change will 

result in a fee reduction; for a quote or order 

through which a member acts as a liquidity 

provider, this change will eliminate the rebate 

previously paid to the member. See e-mail from 

John Yetter, Vice President and Deputy General 

Counsel, Nasdaq, to Sara Gillis, Attorney, Division 

of Market Regulation, Commission, on April 2, 2007 

(‘‘April 2, 2007 E-mail’’). 

6 Depending on the price of the transaction and 

a member’s average daily share volume during the 

month, this change may either constitute a fee 

increase or a fee reduction for a particular routed 

order. See April 2, 2007 E-mail, supra note 5. 

7 17 CFR 242.610. 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

No. SR–ISE–2007–21 on the subject 

line. 

Paper Comments: 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2007–21. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the ISE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2007–21 and should be 

submitted on or before May 1, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6672 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55576; File No. SR–

NASDAQ–2007–026] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Pricing for Nasdaq Members Using the 

Nasdaq Market Center 

April 3, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 22, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by Nasdaq. 

Nasdaq has designated this proposal as 

one establishing or changing a due, fee, 

or other charge under Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b–

4(f)(2) thereunder,4 which renders the 

proposed rule change effective 

immediately upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to modify the 

pricing for Nasdaq members using the 

Nasdaq Market Center. The text of the 

proposed rule change is available at 

Nasdaq, on the Exchange’s Web site at 

http://www.nasdaq.com, and in the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq included statements concerning 

the purpose of, and basis for, the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. Nasdaq has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq proposes to conform its 

execution fees and liquidity-provider 

rebates for transactions in non-Nasdaqlisted securities priced under $1 to the 

current fees and rebates for Nasdaqlisted securities priced under $1. The 

execution fees for such transactions will 

be 0.1% of the total transaction cost, 

and the liquidity-provider rebate will be 

zero.5 Thus, for example, the execution 

fee for a trade of 100 shares in a stock 

priced at $0.70 would be $0.07, with no 

rebate to the liquidity provider. 

Nasdaq is also proposing to modify 

the routing fee for Nasdaq-listed and 

non-Nasdaq-listed securities priced 

under $1 to 0.3% of the total transaction 

cost.6 The change reflects the fact that 

under Rule 610 of Regulation NMS,7

market centers to which Nasdaq routes 

may charge Nasdaq only up to 0.3% of 

the transaction cost for executing routed 

orders in securities priced under $1. 

Nasdaq recently began trading nonNasdaq-listed securities priced under $1 

in sub-penny increments. As a result, 

Nasdaq has seen an increase in its share 

volume in these securities. Nasdaq 

believes that, as is true for Nasdaq-listed 

securities, the pricing structure for these 

securities ensures that market 

participants do not pay execution or 

routing fees, or receive rebates, that are 

disproportionately large when 

compared with the dollar value of a 

particular transaction. Nasdaq believes 

that the changes also ensure that 

execution fees are in compliance with 

Rule 610 of Regulation NMS. 

Separately, Nasdaq has filed a proposal 

for a retroactive reduction in the fees 

charged for executions of non-Nasdaqlisted securities priced under $1 for the 

period from March 5 through March 21, 

2007, to ensure that these fees are also 

in compliance with the requirements of 

Rule 610. 


cprice-sewell on PROD1PC66 with NOTICES
17970 Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(2). 12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6). 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,8 in 

general, and with Section 6(b)(4) of the 

Act,9 in particular, in that it provides for 

the equitable allocation of reasonable 

dues, fees, and other charges among 

members and issuers and other persons 

using any facility or system which 

Nasdaq operates or controls. Nasdaq 

believes that this change will ensure 

that the level of fees and rebates 

associated with trading securities at 

prices under $1 is consistent with the 

value of these securities, the costs of 

routing orders to other market centers 

for execution, and the requirements of 

Rule 610 of Regulation NMS. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

establishes or changes a due, fee, or 

other charge applicable only to a 

member imposed by Nasdaq, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.11 At any time within 60 

days of the filing of the proposed rule 

change, the Commission may summarily 

abrogate such rule change if it appears 

to the Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2007–026 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2007–026. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of Nasdaq. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NASDAQ–2007–026 and 

should be submitted on or before May 

1, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6674 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55567; File No. SR–NYSE–

2007–35] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Technical Amendments to the 

Amended and Restated Certificate of 

Incorporation of NYSE Euronext 

April 2, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 29, 

2007, New York Stock Exchange LLC 

(‘‘Exchange’’ or ‘‘NYSE’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

substantially by the Exchange. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposal effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to make 

certain technical changes to the 

amended and restated certificate of 

incorporation of NYSE Euronext to 

remove all references to ‘‘Year 1 NYSE 

Shares’’ and ‘‘Year 1 NYSE Group 

Shares’’ from the provisions regarding 

transfer restrictions and to clarify that it 

is the currently operative certificate of 

incorporation of NYSE Group, Inc. (and 

not the certificate of incorporation of 

NYSE Group, Inc. that will be operative 

after the closing of the Combination (as 

defined below)) which contains the 

definitions of the terms ‘‘Year 2 NYSE 

Share’’ and ‘‘Year 3 NYSE Share.’’ The 

text of the proposed rule change is 

available at the Exchange, http:// 

www.nyse.com, and the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 


cprice-sewell on PROD1PC66 with NOTICES